Question: Suppose the current exchange rate between USD and MSN is: MXN/USD = 8.33. At this time, the rental price of a 1,000 sq ft office

Suppose the current exchange rate between USD and MSN is: MXN/USD = 8.33. At this time, the rental price of a 1,000 sq ft office space in downtown LA is USD 6,000 while it is MXN 48,000 in downtown Mexico City. Estimate the implied exchange rate (MXN/USD) that would make the dollar value of the office rental rate in downtown Mexico City exactly equal to the office rental rate in downtown LA. O MXN/USD = 0.125 O MXN/USD = 0.120 O MXN/USD = 9.333 O MXN/USD = 8.000

Suppose the current exchange rate between USD and MSN is: MXN/USD =8.33. At this time, the rental price of a 1,000 sq f office space in downtown LA is USD 6,000, while it is MXN 48,000 in downtown Mexico City. Estimate the implied exchange rate (MXN/USD) that would make the dollar value of the office rental rate in downtown Mexico City exactly equal to the office rental rate in downtown LA. MXN/USD=0.125 MXN/USD =0.120 MXN/USD =9.333 MXN/USD =8.000

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